The New South Wales Government has unveiled an ambitious plan to supply more than 170,000 new homes across greater Sydney.
Eight existing suburbs will be re-zoned to accommodate 30,000 new homes in high density apartment blocks.
The Government has also released greenfield sites on the city's north west and south west outskirts to build new houses, business parks and town centres over the next 20 years.
The plans have some similarities to proposals in New Zealand, where the Auckland Council has proposed a unitary plan to re-sone more than half of Auckland's residential land is to be rezoned for apartments and higher-density development to squeeze in a million extra people by 2040.
The NZW announcement is one of the state's largest ever housing programmes, the ABC reports.
Premier Barry O'Farrell says the plan will meet the city's future housing needs.
"It's about ensuring that areas open up as the infrastructure is available," he said. "It's about better balancing the needs of this city.
"Ultimately economics drives everything.
"Our argument is the more blocks of land we can release the greater downward pressure we can put on housing.
"It has been so high for so long because under the former government not enough housing was developed because not enough land was being released."
Speaking at one of the proposed sites, planning minister Brad Hazzard said the plan would solve the city's housing shortage and curb rising prices.
"Where we are standing there will be 10,000 homes, there will be 16,000 jobs."
The roads and transport to support the plan will be funded from the Government's $62 billion infrastructure fund.